Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1887-01-07
A BUILDING ASSOCIATION.


The business men of Austin intend to
form building association, at once. Ex-
perience has proven that an association
of this kind is of great advantage to q
city or town. Other cities of the size of
Austin, throughout the state, have these
associations, and have been greatly bene-
flied by them.
Already there have been twenty appli-
cations for loans. 1t is safe to say, that
next spriRg, this association could
build one hundred houses.
Following are some extracts from an
article IN the Pioneer Press, on the asso-
Citations in that city. It furnishes some
interesting information.
The first building ASSOCIATION west Of
Ohio was organized in St. Paul in AUGUST
1869, the st. Paul Mutual No. l. There
are thirty seven building associations in
St. Paul, with about 5000 members. and
two or three more are organizing. They
meet monthly to pay in the installn1ents
on their stock and on their loans. Their
monthly receipts average about 800. 900
or 81, zoo, 600 per annum. The only uses
allowed for these receipts are to make
loans to their members to build houses
or for any other purpose, aud to redeem
the stock when members wish to with
draw or when the stock natures and rip.
ems to par value, which takes from eight
and half to ten years In St. Paul and
nine to twelve in Philadelphia. Any
person who can pay one dollar per month
can be stakeholder to the amount of
two hundred dollars, and entitled to q
loan to the extent of his stock which
loan must be secured by an
assignment of his stock and real
Ia
the loan. When the member borrows he
pays double every month what he paid as
non-borrower. but he shares in the pro-
fits of the stock the same as the nen-bor-
rover, and his payments cease at the
same time; that is, when the stock ma
lures to par value, and his par stock
equsling the face of his loan (bonus and
all) Offsets his loan and pays It, THIS
participation in profits pays his bonus,
ank makes his loan fair and reasonable
enc, and relieves it of the usurious fea-
tuEe whish some persons suppose attach
es to their loans. II
A careful estimate by the secretaries of
the associations in st. Paul places the
number of houses built by loans IN their
associations at 831 per annum. The fg
ures have been taken from the books in
large number of the associations, and
the opinion 10 that the number ig not
overstated; and the cash receipts Justify
the above estimstes. The amount paid
monthly By the borrowers who hIild
these houses seldom exceeds the rents
which are paid for similar houses. Often
il is less-accordlng to The means of the
borrower independent Of the loan. It
becomes thus not SO much : question Of
interest more or less), but whether q,
man will throw away what he pays for
ten years for rent, while his landlord
eWns the house, or whether he will pay
itlnto his own pocket at the same time
and own the house himself. The public
benefit TO cities and states resulting from
the building features Of these associa-
Of the population owning their own
homes, who are attached to the soil and
interested In low taxes and good govern
tlnent. and Opposed to all sociallStic and
disorganlzing gchemes.